DRAFTING GROUP II

On 17 (economic, social and environmental objectives), the G-77/CHINA
expected SWITZERLAND to drop the labor standards issue. In 17(a) (national
strategies), the G-77/CHINA accepted a US reference to assistance provided as
appropriate through international cooperation. In the G-77/CHINA-proposed text on the
international economic environment, the US and the G-77/CHINA agreed to consult on
mutually acceptable language on globalization and the impact of an unsupportive
international environment. The US deleted the increasingly widening gap between
developed and developing countries and the urgent need for a dynamic international
environment. On 17ter(dialogue and partnership), the US, supported by
CANADA, inserted inter alia before a reference to common but differentiated
responsibilities, as the Rio Principle 7 applies to the environment and not to the
economic environment.

In 18 (eradicating poverty), delegates added text noting: the severity of poverty,
particularly in developing countries, and that eradication is one of the fundamental goals
of the international community, as reflected in Commitment 2 of the Copenhagen
Declaration (G-77/CHINA); eradication is essential for sustainable development
(CANADA); eradication is an overriding theme of sustainable development for the
coming years (EU); national governments efforts and international cooperation and
assistance should be complementary (revised US); the 20/20 initiative as referred to in the
WSSD Programme of Action (revised NORWAY); and the need for urgent
implementation of relevant commitments agreed since Rio (G-77/CHINA). A
NORWEGIAN reference to redistributive policies was bracketed.

In US-proposed language on participation in poverty eradication, the G-77/CHINA
objected to participation in monitoring and assessing strategies and ensuring that
programmes reflect peoples priorities and perceptions. In 18(d) (poverty and
women), a BANGLADESH-proposed amendment to include micro-credit was accepted.
ARGENTINA inserted after a call for full implementation of the Beijing Platform for
Action consistent with the report of the FWCW. The US limited the call to relevant
portions. The amendments were bracketed.

On 19 (changing consumption and production), the G-77/CHINA objected to a
CANADIAN reference to changing patterns in rapidly industrializing countries. The G-
77/CHINA agreed to consider Chair Amorims suggestion that their amendment on
industrialized countries be deleted along with existing text on similar patterns in
developing countries. The references were bracketed. On a US-proposed amendment on
elaboration of national policies, the EU advocated policy making at both the international
and national levels. With the exception of a reference to international [policy]
elaboration, a reformulation of the US amendment was agreed.

In 19(a) (environmental cost internalization), the EU modified a G-77/CHINA
proposal to seek to avoid potential effects for market access by developing countries.
The G-77/CHINA objected to text calling for a move towards pricing natural resources in
a way that fully reflects economic scarcity. A NORWEGIAN proposal suggesting that
governments consider shifting the burden of taxation to unsustainable patterns of
production and consumption was added. G-77/CHINA-proposed text on the role of
business was added with bracketed text encouraging/taking action and calling for
publishing of environmental and social audits on their own activities.

On 19(b) (core indicators), a G-77/CHINA amendment on monitoring critical
trends particularly in the industrialized countries was bracketed after a US objection.
On 19(e) (energy and material efficiency), the G-77/CHINA preferred deleting a
reference to targets and, with the US, deleting timetables for implementation. The EU
wanted to retain both international and national programmes and timetables. The
reference to targets, goals or action was bracketed. The G-77/CHINA agreed to
consider retaining the call for timetables as appropriate. References to EU proposals on
studies to increase resource productivity ten-fold and, as an intermediate step, by a factor
of 4, were bracketed following objections by the G-77/CHINA. The EU linked its
acceptance of a G-77/CHINA amendment on assisting developing countries to acceptance
of the EU initiative. A new subparagraph regarding voluntary and transparent use of eco-
labelling was added.